Asia International Grid Connection SG - Interim Report

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1 Asia International Grid Connection SG - Interim Report The State of the Interconnectors in Europe Since 1910s 1915 Denmark-Sweden Interconnection 1920 Interconnection between France, Switzerland and Italia. After WWⅡ 1951 UCPTE among 8 countries. (West-Germany, France, Italy and others) 1963 NORDEL in Northern Europe UFIPTE by France, Spain and Portugal Currently The region is divided into four synchronous grids, Continental Europe, Nordic, UK, and Baltic, and they are connected asynchronously through direct current transmission, so that electricity trade can be conducted among them. Figure 5 Power flows between countries in Europe (2015) Source: ENTSO-e, Statistical Factsheet

2 Asia International Grid Connection SG - Interim Report International power grid in Asia in the GEI vision Source: Official website of the international non-profit organization Global Energy Interconnection Development and Cooperation Organization (GEIDCO) 2

3 Asia International Grid Connection SG - Interim Report Korea Electric Power Corporation Northeast Asia Interconnection Vision Source: Hwan-Eik Cho, President of Korea Electric Power Corporation, lecture document September 9, 2016)

4 What is going to happen? - Further acceleration of VRE Historical world power generation mix NEO2018 power generation mix 100% Other 90% Hydro Solar 80% 70% Nuclear Wind 60% Oil 50% Gas 40% 30% 20% Coal 10% 0% % solar + Wind 64% Renewables 29% fossil fuel source: Bloomberg(2018), NEO

5 Japan s status: Utilities energy mix Utilities Electricity Demand and Generation FY2010-FY % vs FY % vs FY2011 RE Hydro Nuclear Fossil (incld. other) Demand Total Generation FY!5 Source: The Ways Forward for Japan EPCOs in the New Energy Paradigm, Romain Zisslar, Renewable Energy Institute (2017)

6 Japan: Renewables expansion Japan Change in Electricity Generation TWh ! Coal Oil Gas Nuclear Hydro Wind Solar Bio & Geo Other Total Source: BP Statistical Review of World Energy 2018, REI

7 Japan: Renewables cost declining Japan LCOE- Solar PV Japan & Onshore LCOE - Solar Wind PV vs & Fossils Onshore Wind VS. Fossils $/MWh - nominal best performance PV is reaching almost the bottom of fossil h h h h1 Notes: Notes: Fossil Fossil fuel range fuel range does does not include not include oil, and oil, and Operational Operational durations; durations; Solar PV Solar 25 PV yrs, 25 wind years, onshore wind 20 onshore yrs, CCGT 20 years, 25 yrs, CCGT and coal 25 years, 35 yrsand coal 35 years Source: BNEF, Levelized Cost of Electricity Fossil fuel Fuel range Exclude Oil-Fired Onshore wind range Wind (Onshore) range Solar PV range PV and range Coal mid Coal (Average) GCC (Average) CCGT mid Solar PV/Wind mid Wind (Onshore) and PV (Average) Source: BNEF, Levelized Cost of Electricity, Renewable Energy Institute

8 Comparison of LCOE of different energy sources Unsubsidized LCOE H1 Solar PV and onshore wind cost competitive in many countries Fossil fuel range Nuclear range Solar PV range Onshore wind range $/MWh China India JAPAN Germany UK Brazil Chile US. 0 Source: BNEF Asia Europe Americas!8 Source: BNEF, Levelized Cost of Electricity, Renewable Energy Institute

9 Japan: PV covers 76% of demand in Kyushu GW 18 Kyushu Electric Power Co.service area: Area demand and solar PV output on 23 April % of the electricity demand was covered by solar PV !9 source: REI, Time of day Solar covered 76% of a demand in Kyushu at its peak generation, July 2017 Keiji Kimura & Tatsuya Wakeyama, Senior Researcher, Renewable Energy Institute

10 Japan: Strategic Energy Plan 2018 Japan s electricity mix in 2030: gas 27%, coal 26%, oil 3%, nuclear 20-22%, renewables 22-24% GHGs emission reduction : 26% by 2030 from 2013 level = 18% reduction from 1990 level electricity demand will sharply increase - then will be reduced with energy saving measures electricity demand ES/EE 196TWh 17% total power generation incl. energy efficiency 1,278TWh ES/EE 17% RE 19-20% 2030 total power generation 1,065TWh geo 1-1.1% biomass % RE 22-24% wind 1.7% PV 7.0% hydro % electricity increases electricity nuclear 17-18% nuclear 20-22% demand 966.6TWh demand 980.8TWh LNG 22% LNG 27% coal 22% coal 26%! oil 2% oil 3% source: Ministry of Economy, Trade and Industry, 28 April 2015

11 Japan: Strategic Energy Plan 2018 on interconnectors!12

12 Another opportunity: Asia Super Grid Asia Super Grid Japan Super Grid!13

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